South Africa: ICT industry receives funding boost

13 June 2012

ICT infrastructure in South Africa has been handed a significant funding boost by the International Finance Corporation (IFC), which has ploughed equity of $35 million in to the Convergence Partners Communications Infrastructure Fund.

According to the IFC, the money will be used to fund development of the burgeoning ICT industry in South Africa.

"The fund is expected to play an important development role in Africa, where ICT infrastructure bottlenecks impede the growth of business and companies lack access to finance, especially risk capital and related expertise from investors that can help businesses succeed," the IFC said.

Thanks to the new investment, the quality of communication services should improve throughout Africa. So, too, should the affordability of the services, according to the IFC.

Andile Ngcaba, the chairman of investment management and advisory firm Convergence Partners, told itweb.co.za that the investment represents an opportunity to accelerate progress in South Africa's ICT industry.